ADB is helping the People's Republic of China upgrade 890 kilometers of trunk roads in Yunnan province. Many of these roads are connected with or form part of the Greater Mekong Subregion’s northern and north-south transport corridors. It will also test a performance-based road maintenance scheme, set up a road asset management system, and implement an institutional development plan.
|Project Name||Yunnan Sustainable Road Maintenance (Sector) Project|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||Some gender elements|
Yunnan is a poor, densely populated province with a population of 46 million. Because it is landlocked and mountainous,trade with other provinces and foreign countries involves transportation over long distances, whcih makes its products less competitive. These are still large pockets of poverty because of inadequate road access, limited land availability for agriculture, and cultural barreirsto out-migration. In 2011, 27% of Yunnan's rural population was considered poor, using the PRC's official poverty line of CNY2,300 per year.
Yunnan is strategically located along the PRC border with Lao People's Democratic Republic, Myanmar, and Viet Nam. About 60% of freight and 80% of passengers travel by road. The Yunnan Highway Administration Bureau (YHAB), under the Yunnan Provincial Department of Transport (YPDOT), manages a trunk road network of 24,089 km, which includes 45% of the province's paved roads. These roads form part of or connect with the Greater Mekong Subregion (GMS) Northern Economic Corridor and North-South Economic Corridors.
The project will improve the sustainability of Yunnan's trunk road network. It will (i) rehabilitate about 890 km of trunk roads, (ii) introduce performance-based road maintenance on a pilot bais on 164 km of trunk roads, (iii) set up a road asset management system, and (iv) implement an institutional development plan.
|Project Rationale and Linkage to Country/Regional Strategy||The government has asked ADB to support YHAB's trunk road maintenance program and assist in sector reform and insitutional strengthening. The proposed project represents a second phase of ADB support to road maintenance in Yunnan. By targeting a poor province and by advancing the agendas of road asset management and safety, the project is aligned with ADB's PRC country partnertship strategy and the Sustainable Transport Initiative.|
|Impact||The people of Yunnan have improved access to a quality and safe trunk road network.|
|Description of Outcome||The sustainability of Yunnan's trunk road network improved.|
|Progress Toward Outcome||To be assessed during completion review in 2019.|
|Description of Project Outputs||
1. Trunk roads rehabilitated
2. Performance-based road maintenance piloted
3. Road asset management system enhanced
4. Institutional capacity of YHAB strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Phase 1 and 2 subprojects were generally completed.
Phase 3 subprojects completed bidding in February 2017. Rehabilitation is scheduled in March 2017 onwards. Phase 4 subprojects selection will start in Q2 and Q3 2017. Performance-based road maintenance contract awarded in 2015 and progressed as per the schedule.
Road asset management system is being implementated. Equipment and data are to be installed and collected in 2017.
Domestic training on capacity building has been programmed and will be implemented from mid-2017.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is category B for environment. A consolidated initial environmental examination and environmental management plan was prepared for the seven subprojects chosen for rehabilitation during phase 1 and the pilot testing of the two performance-based road maintenance modalities. These documents comply with the PRC's regulatory requirements and ADB's Safeguard Policy Statement (2009) and were disclosed on the ADB website on 25 April 2013. Two of the subprojects have been classified as category B, and the rest as category C. The works will be confined to the original right-of-way of existing national, provincial, and county roads. All identified environmental impacts will be mitigated through activities under the environmental management plan. An environmental assessment review framework has been prepared to guide the assessment of subprojects to be identified and carried out later under the project's three subsequent phases. YHAB accepted PPTA recommendations to increase its environmental capacity, and tools have been developed to manage environmental impacts and opportunities associated with maintenance activities.|
|Involuntary Resettlement||Due diligence indicated that no land acquisition or resettlement will be required for the first-year subprojects. While the subprojects yet to be selected for the remaining phases are expected to be similar, the project was classified as resettlement category B to allow for changes at detailed design stage if a future subproject involves modest resettlement due to road widening or straightening or to improve safety features. A resettlement framework and a sample resettlement plan have been prepared and were disclosed on the ADB website on 25 April 2013. Should a subproject require land acquisition or resettlement, the executing agency will prepare and submit resettlement plan(s) for ADB review and clearance; this will include a participatory consultation process, and other measures defined in the resettlement framework. The project will not finance a subproject that requires significant resettlement.|
|Indigenous Peoples||Due diligence conducted during the project preparatory TA found no significant adverse impacts on ethnic minorities in the project area that would trigger the indigenous peoples safeguard requirements, hence the project is classified as indigenous peoples category C.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations have been organized during project preparation stage for project scope, environmental issue, and involuntary resettlement.|
|During Project Implementation||Consultation and participation strategy will continue during implementation.|
|Responsible ADB Officer||Zhang, Wen|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Yunnan Provincial Department of Transport
No. 1 Huang Cheng Xi Road
Harbin,People's Republic of China
|Concept Clearance||12 Dec 2011|
|Fact Finding||24 Sep 2012 to 28 Sep 2012|
|MRM||18 Oct 2012|
|Approval||02 Dec 2013|
|Last Review Mission||-|
|Last PDS Update||13 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|02 Dec 2013||30 May 2014||07 Aug 2014||31 Mar 2019||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||232.40||Cumulative Contract Awards|
|ADB||80.00||02 Dec 2013||64.12||0.00||80%|
|Cofinancing||0.00||02 Dec 2013||34.12||0.00||43%|
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